Michigan’s digital gambling debut has gone from strength to strength, after recording a stellar full month following an impressive ten-day launch in January in the wake of the region’s online gaming and sports betting market launching on January 22, 2021.
Online casinos and poker rooms generated $79.7m in gross receipts during February, up from January’s $29.2m, and pitting the region behind New Jersey but on par with Pennsylvania towards the summit of the US charts.
Michigan’s igaming ecosystem brought in $2.8m per day over the 28 days in February, down slightly from $2.9m per day in January. Adjusted gross receipts of $75.2m yielded $14m in tax revenue for the state. BetMGM/MGM Grand Detroit once again led the market with $26.9m in gross receipts.
“The interest in online casino games in Michigan has been off the charts for a new market, but expect the growth to settle a bit in the coming months,” said Matt Schoch, analyst for PlayMichigan. “Regardless, there has never been a more impressive debut.”
Furthermore, Michigan’s online sportsbooks extended their record-breaking debut into February with more than $300m in bets in their first full month after launch, becoming the sixth, and earliest, to surpass that milestone.
“Michigan residents and visitors continued to show strong interest in internet gaming and sports betting during a snowy and cold February,” commented Richard Kalm, Michigan Gaming Control Board executive director.
“The internet gaming taxes more than tripled, but that’s what we expected with a full month of gaming. This means more funding for the city of Detroit, K-12 education, economic development and tribal communities.”
February brought $301.9m into Michigan’s online sportsbooks, with the per-day average dipping to $10.8m in February from $11.5m one month earlier.
The month’s bets yielded $9.5m in total gross sports betting receipts, down from $13.3m in January. Taxable revenue fell to a $10.8m loss, but the state eked out $142,240 in tax revenue.
Combined with $23.7m generated by retail casinos, Michigan sportsbooks took in $325.6m in bets in February which topped Indiana’s $273.9m, the nation’s number five market.
“Michigan has long had the potential to be a top five market, but its rapid ascent shows just how much pent-up demand was unleashed,” added Jessica Welman, analyst for PlayMichigan.com.
“As exciting as the early returns are, though, we’re still in a period where enthusiasm is in part a product of legal betting still being novel. That said, there is no reason to believe that the market’s growth will stop after enthusiasm normalises.”
FanDuel/MotorCity Casino topped the market for the second consecutive month with $87.2m in online handle, but lost $78,889 in gross sports betting receipts.
BetMGM/MGM Grand Detroit’s $75.7m handle was second, with the entity topping gross receipts with $5.3m and taxable revenue of $2.4m.